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Judgment method of gold price trend

OANDA:XAUUSD   Gold Spot / U.S. Dollar
For gold investors, how to judge the price trend of gold is the most concerned and important issue. So, how can we judge the price trend of gold in gold investment? Here are the following methods.

1. Understand the meaning of the curve

In the process of gold investment, you will see different types of trend chart curves, and different curves have their own meanings. The appearance of the white curve indicates the weighted index of the market, that is, the actual index of the market that is always mentioned in the daily announcement of the stock exchange. The red and green column lines will always appear near the red and white lines. Its main function is to reflect the different proportions of buying and selling orders of all stocks in the market at that time. The increase or decrease of the red column line can directly indicate the increase or decrease of the buying power during the rise, on the contrary, the increase or decrease of the green column line indicates the increase or decrease of the selling power in the down market. Yellow column lines often appear below the red and white curves, mainly indicating the trading volume per minute, and its unit is lot. When investors conduct analysis, they suggest that you can use these curves as an auxiliary tool to make your predictions more accurate.

2. Shape and location

There are two main forms of gold investment, one is long-term and the other is short-term. Usually, investors pay more attention to the long-term pattern, because the trend of the short-term pattern moves in a relatively small range, and there are not many withdrawal data. At the same time, it is easy to be affected by various factors, and it is difficult to grasp it accurately, and eventually gets lost in the numerous influencing factors.




Therefore, investors must have a thorough grasp and understanding of the long-term pattern in order to be able to analyze the market with ease. The effective combination of positions in gold investment is very important. There are many types of positions, and the information reflected is also different. For example, the head-and-shoulders bottom pattern indicates a bottom reversal. It usually exists in the bottom area. If a head-and-shoulders bottom appears, investors need to exit the market and wait patiently. So we say that the change of position can help investors directly judge the content of the next transaction.


3. Time to open a position

Although the judgment of the gold trading trend is correct, if there are several major adjustments after opening a position, and there is a situation of stop loss and exit due to various reasons, such stop loss will inevitably cause damage to the account funds and will also affect to the final profitability.

The choice of opening a position is actually to grasp the rhythm on the basis of trend analysis. Because the price of gold always advances in waves, and the trend is mixed with adjustment trends, the long-term, medium-term, and short-term trends may be inconsistent. If the trend is right, if the rhythm is not grasped correctly, there will also be a problem of stopping loss and leaving the market.
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